USD/JPY Forex Technical Analysis – Likely to Strengthen Over 108.866, Weaken Under 108.690

Based on the early price action and the current price at 108.815, the direction of the USD/JPY is likely to be determined by trader reaction to the minor pivot at 108.866.
James Hyerczyk

The Dollar/Yen is inching higher early Monday on hopes that the United States and China may soon end their trade war after comments from two high-ranking U.S. officials late last week and a Chinese official over the weekend indicated the two economic powerhouses were moving closer to a deal. Given the lack of concrete detail, however, investors still remain mostly cautious.

At 05:10 GMT, the USD/JPY is trading 108.815, up 0.030 or +0.03%.


Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 109.488 will signal a resumption of the uptrend. The main trend will change to down on a move through the last main bottom at 107.891.

The minor trend is also up. A move through 108.863 will make 108.244 a new minor bottom.

The first minor range is 107.891 to 109.488. Its 50% level or pivot at 108.690 is acting like support.

The second minor range is 109.488 to 108.244. Its 50% level or pivot at 108.866 has provided resistance the last three sessions.

The short-term range is 106.485 to 109.488. Its retracement zone at 107.987 to 107.632 is potential support.

The main range is 104.463 to 109.488. Its retracement zone 106.976 to 106.383 is major support.

Daily Technical Forecast

Based on the early price action and the current price at 108.815, the direction of the USD/JPY is likely to be determined by trader reaction to the minor pivot at 108.866.

Bullish Scenario

A sustained move over 108.866 will indicate the presence of buyers. The first upside target is a downtrending Gann angle at 109.051. This is a potential trigger point for an acceleration into the next downtrending Gann angle at 109.269. This is the last potential resistance angle before the 109.488 main top.

Bearish Scenario

A sustained move under 108.866 will signal the presence of sellers. The first downside target is the 50% level at 108.690. This is a potential trigger point for an acceleration to the downside with the first target angle coming in at 108.485.

If 108.485 fails then look for the selling to possibly extend into last week’s low at 108.244, followed by an uptrending Gann angle at 108.213.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.